Muhith presents Tk 4 trillion budget for next fiscal year

Finance Minister AMA Muhith has presented a Tk 4 trillion budget for fiscal 2017-2018 in parliament.

Finance Minister AMA Muhith proposing the budget for fiscal 2017-18 in parliament. Screengrab from live telecast by the state broadcaster BTV. Finance Minister AMA Muhith proposing the budget for fiscal 2017-18 in parliament. Screengrab from live telecast by the state broadcaster BTV.

A VAT-reliant Tk 4 trillion budget

Muhith to present his ‘best’ budget

The cabinet, chaired by Prime Minister Sheikh Hasina, has approved the budget.

Of the total expenditure, Tk 2.88 trillion is expected to come from the revenue earnings.

But the budget, which Muhith claimed to be his best among the 11, will have a deficit of Tk 1.12 trillion, which is 5 percent of the GDP.

The finance minister is expecting to cover the shortfall with loans from internal and external sources. The budget is 17 percent larger than the previous year.

The new budget relies largely on collections under the new VAT law to cover a 35 percent growth in revenue earnings.

 

The Awami League came to power on Jan 6, 2009, under the leadership of Prime Minister Sheikh Hasina. For the first six months of the tenure, it implemented the budget it inherited from the caretaker government.

Muhith placed his first full budget for FY2010, and the size of the budget was less than Tk 1 trillion.

The finance minister, who is credited for presenting nine budgets in a row, was not ready to accept the criticism that the large budget was having 'problems' in its implementation phase.